Analyzing Warrior Met Coal (HCC) and The Competition

Warrior Met Coal (NYSE:HCC) is one of 1,989 publicly-traded companies in the “Metals & Mining” industry, but how does it compare to its rivals? We will compare Warrior Met Coal to similar companies based on the strength of its dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Analyst Ratings

This is a summary of recent recommendations and price targets for Warrior Met Coal and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warrior Met Coal	0	3	4	0	2.57
Warrior Met Coal Competitors	6307	22405	32002	1752	2.47

Warrior Met Coal currently has a consensus target price of $102.60, indicating a potential downside of 5.16%. As a group, “Metals & Mining” companies have a potential upside of 15.64%. Given Warrior Met Coal’s rivals higher possible upside, analysts clearly believe Warrior Met Coal has less favorable growth aspects than its rivals.

Volatility and Risk

Warrior Met Coal has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Warrior Met Coal’s rivals have a beta of 1.05, indicating that their average stock price is 5% more volatile than the S&P 500.

Profitability

This table compares Warrior Met Coal and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Warrior Met Coal	13.05%	10.02%	7.84%
Warrior Met Coal Competitors	-1,155,490,457,955,101,400.00%	-14.48%	-2.08%

Earnings & Valuation

This table compares Warrior Met Coal and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Warrior Met Coal	$1.31 billion	$57.00 million	26.00
Warrior Met Coal Competitors	$4.94 billion	$267.28 million	-21.13

Warrior Met Coal’s rivals have higher revenue and earnings than Warrior Met Coal. Warrior Met Coal is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

92.3% of Warrior Met Coal shares are owned by institutional investors. Comparatively, 16.1% of shares of all “Metals & Mining” companies are owned by institutional investors. 2.1% of Warrior Met Coal shares are owned by insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Warrior Met Coal pays an annual dividend of $0.32 per share and has a dividend yield of 0.3%. Warrior Met Coal pays out 7.7% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 8.5% and pay out 10.6% of their earnings in the form of a dividend. Warrior Met Coal has increased its dividend for 1 consecutive years.

Summary

Warrior Met Coal beats its rivals on 8 of the 15 factors compared.

About Warrior Met Coal

Warrior Met Coal, Inc. produces and exports non-thermal metallurgical coal for the steel industry. It operates two underground mines located in Alabama. The company sells its metallurgical coal to a customer base of blast furnace steel producers located primarily in Europe, South America, and Asia. It also sells natural gas, which is extracted as a byproduct from coal production. Warrior Met Coal, Inc. was incorporated in 2015 and is headquartered in Brookwood, Alabama.